New York, August 15 – Oil prices surged over $1 a barrel on Thursday, driven by positive U.S. economic data that eased concerns about an imminent recession in the world’s largest economy. However, gains were tempered by ongoing worries about slower global demand.
Thank you for reading this post, don't forget to subscribe!Brent crude futures climbed $1.28, or 1.6%, settling at $81.04 per barrel. U.S. West Texas Intermediate (WTI) crude futures rose by $1.18, or 1.53%, to close at $78.16.
The boost in oil prices followed reports that U.S. retail sales exceeded expectations in July, coupled with a smaller-than-anticipated rise in unemployment claims. These indicators suggested a stronger-than-expected economic outlook, reducing fears of a recession.
“The positive economic data serve as an indicator that we’re heading towards a soft landing,” said Bob Yawger, director of energy futures at Mizuho in New York.
Additional support for oil prices came from geopolitical concerns, particularly regarding potential Iranian responses to recent Middle Eastern tensions and ongoing conflicts in Ukraine and Gaza.
Despite the rally, the upside was limited by signs of a slowing global economy, notably in China, where factory output and refinery activity both showed declines in July. U.S. crude oil inventories also unexpectedly rose by 1.4 million barrels in the week ending August 9, further capping price increases.
